RFID-plus piloted by Microsoft for SMEs

Microsoft Business Solutionshas just taken the wraps off a pilot that could signal the start of RFID (radio frequency identification) and web-based supply chain event management for the broad swathe of manufacturing SMEs. It also demonstrated advanced demand planning and electronic partner collaboration and warehouse management, all built on top of it own ERP at Dutch mid-range snacks and crisps manufacturer KiMs. The project has been live and successful – delivering business benefit – since late in December with one supplier and one customer. KiMs says it’s achieving much better supply chain visibility – with automated monitoring and alerts for its supplier, plus finished goods tracking for internal, warehouse and customer use. Looking at the RFID part of the project, the objective was to automate material movements management. MBS added RFID functionality to KiMs’ Axapta warehouse management module, while SAMSys Technologies installed a UHF RFID pallet tracking system in its finished goods area. Now, a unique identifier is written to an RFID tag on each pallet, which associates it with production data via SAMSys readers, feeding data directly into Axapta ERP. The tags are monitored at storage, loading and during shipment, and Jørn Tolstrup Rohde, KiMs CEO, confirms that KiMs is already reaping the benefits of automation, with virtually no manual intervention and thus lower costs and more reliable materials tracking. Not only does RFID mean better internal and outbound supply chain visibility and thus customer service, but he says increased data accuracy will enable him to trim inventory levels at the distribution centre. Meanwhile, on the inbound supply chain side, SCEM technology came from specialist Categoric Software. This system has automated processes like purchase order confirmation monitoring, supplier delivery reminders and monitoring – for example, automatically confirming quantity, receipt date and the rest. If there’s a problem the system automatically alerts KiMs’ purchasers and supplier. Examples cited include missing order confirmation or raw materials not arrived on schedule. Says Tolstrup: “We can see items delayed, items not received, no shipping note sent… It means we can offer an even better delivery service. We can take action earlier with our supplier; we have more time to correct mistakes or re-plan production or shipping.” He indicates better customer service combined with lower costs of admin and expediting as other benefits. This implementation also included Microsoft’s recently launched Demand Planner, geared to making more of a science of forecasting and thus again improving service, while lowering inventory levels and reducing operating costs. Key account and brand managers are using the software to make strategic, tactical and operational decisions collaboratively. Tolstrup reckons that’s also streamlined workflow while also improving visibility and quality of forecast data and campaign information, thus improving production and purchasing plans. Then in terms of business-to-business collaboration, the pilot system also automates processes irrespective of the supplier’s or the customer’s remote systems. KiMs thus gets a cost-effective automated purchase and sales order management process with the connected partners, which in turn get better document status and history visibility. Tolstrup says it’s difficult to assess hard cost/benefits yet. He does make the point that the RFID tags still need to come further down in price, but he adds: “The prospect that RFID can help us dramatically increase our ability to read and anticipate our inventory flow is compelling.”